Many people never stop to think of how hard a job it is to administer
the estate or trust of someone who passes away. Often, it's a
thankless job, filled with headaches. That's certainly been the case
for the Michael Jackson Estate executors: entertainment attorney John
Branca and music executive John McClain. Well, at least the headache
part.

Here are the top 5 legal challenges and complications that
the estate executors have had to worry about in the last few months
alone:

1. The AEG Wrongful Death Trial: It's a Thriller!

Now
nearing the five-month mark since opening statements, the heirs of
Michael Jackson vs. AEG trial has been filled with twists and turns, from Lionel Richie's ex talking to the King of Pop's ghost to Jackson's childhood friendship with a mouse (as revealed by the Rolling Stone).

Where
is the case now? Heading to the jury. While many in the media were
quick to report how the Judge recently dismissed two AEG executives from
the case, a more telling ruling came down at the same time. As
reported by CNN:

The
judge also ruled that the Jacksons "presented substantial evidence"
that AEG Live's "conduct was a substantial factor in causing" Jackson's
death.

This means that it's completely up to the jury
to decide if the Jackson heirs' $40 billion claim will win or not. If
the jury views the evidence like the Judge, and feels that there is
"substantial evidence" that AEG hired Dr. Conrad Murray and helped cause
Michael Jackson's death, then his children and mother could win a huge
payday.

As any trial lawyer can tell you, juries are
unpredictable. Often, plaintiffs have an excellent chance at winning
once they get their case to the jury. The fact they've made it this far
could mean big trouble for AEG.

It also means complications for
the estate executors. While they have, for the most part, stayed out of
the fighting, more than a few eyebrows were raised when an estate consultant testified in favor of AEG and against the Jackson heirs. He claimed he did so with approval from the executors.
The executors later denied they gave him permission, but it highlights
how all of this testimony and publicity can only make their job harder.

For
example, the lavish estimates of Jackson's earning capacity may be used
against the estate in its next big court battle: against the Internal
Revenue Service.

2. The IRS Tells The Estate: Who's Bad?

Much was made of Michael Jackson's debt when he passed away -- it was recently estimated to
be as much as $500 million. While Branca and McClain have taken some
heat (like from Randy Jackson, below), there is no disputing that
they've done a masterful job at guiding the estate through troubled
waters into a series of huge paydays. Reportedly, they've brought in over $600 million during the first four years.

There's
one problem that comes with that much success: the tax man. When the
Michael Jackson Estate filed its estate tax return, it reportedly
claimed his assets were worth only $7 million as of the day he died. The
IRS has a slightly different view, estimating the total to be more than
one billion dollars ... and as much as $1.5 billion, in fact. It says
that the estate under-reported his assets so significantly that the
estate owes a tax bill of $702 million. The estate disagrees and has
sued to fight the IRS.

A large part of this dispute centers on the
value of Jackson's image and likeness. The IRS claims it was worth
$434 million, while the estate's tax filing placed a value of only
$2,105.

Which of course, raises the question: If Michael
Jackson's image and likeness, not to mention his other assets (the value
of his music, for example), were worth as little as the estate's tax
filing claimed, why has the estate earned so much money since he died?
While the IRS appears to be overreaching
with its figures -- especially placing such a high value on his image
and likeness and apparently failing to include his extensive debt --
certainly, the post-death success shows that the estate was a tad too
aggressive in its tax return filing after Michael Jackson died.

The Michael Jackson Estate has other headaches to deal with. Like who
exactly is the mother of Michael Jackson's three kids? Deborah Rowe is
often referred to as the mother of Michael Jackson's oldest two
children, Prince and Paris.

But, a new court filing by a woman
named Christine Leroux claims that she was the egg donor for all three
of Michael's children, and she enjoyed a secret, lifetime relationship
with the King of Pop. She says she will pursue a custody battle through
a guardianship proceeding, because she is worried over the welfare of
the kids.

In the filing, Leroux reportedly claims
that she chose names for two of the children, she "ordered" Michael
Jackson to cover their faces in public, and that she even co-wrote songs
Thriller and Heal the World while at the same time
helping to create his media image. While Leroux can't afford an
attorney, she wants to take a DNA and lie-detector tests to "prove" the
truth behind her words.

She'll likely have to come up with some
pretty compelling evidence for the Judge to even go so far as a DNA test
-- certainly she can't be the only woman who's come forward claiming to
be their "real" mother. Plus, being an egg donor is not the same as
being legally recognized as a "mother." In the meantime, though, it's
yet another legal claim that the estate executors have to contend with.

4. Randy Jackson Still Mad At The Executors; Wants Them To Beat It.

As crazy as Leroux's allegations sound, they don't stand alone. In fact, far from it. John Branca told 60 minutes that they've had to deal with countless ridiculous claims.

Michael
Jackson's executors also have to deal with continued rumblings from
Jackson's siblings, some of whom maintain that the will was fake.
Recently, brother Randy Jackson called
Branca and McClain -- along with their lead attorney, Howard Weitzman
-- the "three stooges." He says the family is not happy with them, and
points to the recent IRS dispute as the "tip of the iceberg".

After
the failed "kidnapping" attempt of Katherine Jackson last year by Randy
and two of his siblings (Janet and Jermaine), Randy admits that the
siblings are not all getting along. But the only family member who, at
this point, has legal standing to challenge the executors is Katherine
Jackson. Despite some initial complaining in the months after Michael
Jackson's death, Katherine has not fought Branca and McClain during the
last few years. Many people believed that Randy, Janet, and Jermaine took Katherine Jackson last year in an effort to use her to challenge the executors. But no legal challenge materialized.

Perhaps
Katherine and some of the other family members realize that the
executors have done an exceptional job bringing in money after Michael
Jackson's death. At $600 million in the first four years, that means
that Jackson earned more than any living artist did during the same time
period. Not bad for a couple of stooges, right?

5. The Latest Sex Abuse Claim: Was Jackson A Smooth Criminal?

And
where would Michael Jackson's legal turmoil be without at least one
claim of child molestation? Choreographer Wade Robson was one of the
King of Pop's staunchest allies during the 2005 criminal trial against
Michael Jackson -- which found him not guilty of child molestation.

A
few months ago, Robson filed a claim against the Estate contending that
he was the victim of abuse by Jackson as a child. He points to a
breakdown and years of therapy allowing him to reverse course and bring
the claim, after repeatedly testifying and saying in interviews that
Jackson never touched him.

Normally, a claim filed against an
estate this late into the process would automatically be rejected. But
California has liberal rules allowing late filings in cases of sexual
abuse, as long as it is within three years after an injury from that
type of abuse is discovered.

Only time will tell if Robson's claim
is legitimate or not. The estate's attorney calls the claim
"outrageous and pathetic," so a quiet settlement with Robson isn't
likely. This battle is yet another example of how complicated the
administration of Michael Jackson's estate remains -- more than four
years after the King of Pop's death.

Of course, no one should feel too sorry for the executors. They earn a 10% commission
on many deals they secure for the estate, including the $250 million
Sony deal to release new Michael Jackson songs. So Branca and McClain
are well-paid for the work. But they certainly have to work hard to
earn it.

While perhaps no other estate executors and trustees have
ever had more complicated legal messes to sort through, the Michael
Jackson Estate still has an estate planning lesson for the rest of us.
Everyone planning their estate should think carefully about who should
serve in that all-important role of executor or trustee.

Many make
the mistake of automatically selecting the oldest child, or the one who
lives closest, rather than the person -- even if not a family member --
who is the most trustworthy and well-qualified to do the job.
Administering an estate or trust is never easy -- even when there aren't
Jackson-sized legal dilemmas at every turn. So choose carefully when
planning your estate and trust!

Comments

Top 5 Legal Challenges Facing Michael Jackson's Estate Executors

Many people never stop to think of how hard a job it is to administer
the estate or trust of someone who passes away. Often, it's a
thankless job, filled with headaches. That's certainly been the case
for the Michael Jackson Estate executors: entertainment attorney John
Branca and music executive John McClain. Well, at least the headache
part.

Here are the top 5 legal challenges and complications that
the estate executors have had to worry about in the last few months
alone:

1. The AEG Wrongful Death Trial: It's a Thriller!

Now
nearing the five-month mark since opening statements, the heirs of
Michael Jackson vs. AEG trial has been filled with twists and turns, from Lionel Richie's ex talking to the King of Pop's ghost to Jackson's childhood friendship with a mouse (as revealed by the Rolling Stone).

Where
is the case now? Heading to the jury. While many in the media were
quick to report how the Judge recently dismissed two AEG executives from
the case, a more telling ruling came down at the same time. As
reported by CNN:

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Legal Disclaimer

Legal Disclaimer

Nothing in this blog should be relied on as legal advice. The information contained herein does not create an attorney/client relationship. The articles posted are intended for entertainment and general information purposes only. Laws vary state by state. Anyone seeking legal advice for a specific situation should consult a qualified probate lawyer or similar qualified professional in the appropriate state.